On March 20th, Sales Engine kicked off its three-part webinar series on revenue growth planning. Mike Vannoy, COO, presented part one, How Much Marketing Do You Need?
The webinar begins by taking a look at buyer behavior and the way buyers engage sales and marketing organizations. As marketing extends further into the purchasing process, the alignment to buyers’ needs will shift. Later in the presentation, Mike makes the point that the purchasing process is really a series of integrated touches between sales and marketing—almost a tag team effort. In order to better align to buyers needs, marketing and sales leaders need to consider the answers to the following questions:
How Much Should You Spend on Marketing?
To determine the amount of money organizations should spend on marketing, they must first calculate the cost of customer acquisition (CAC) and factor in the customer lifetime value (CLV). This will show the return yielded from sales and marketing efforts to acquire a single customer. However, the months to recover from customer acquisition costs must also be taken into account.
How Many Leads Does Your Sales Team Need?
First, organizations should start with a simple, funnel conversion model based on revenue goals. It is important to account for nurturing and remarketing as Mike points out, “80% of all marketing leads that sales disqualifies, go on to make a buying decision within a year.” If these disqualified leads can be recaptured, there are a lot of potential sales to be won. Finally, the numbers should be adjusted to account for velocity as new leads are typically not converted into wins within the same month.
How Big Should Your Database Be?
To begin, sales and marketing leaders should calculate the amount of suspects required based on the number Marketing Qualified Leads (MQLs) needed each month. Then, decay and atrophy need to be factored out. According to NetProspex, a database decays by 2% each month. Finally, organization must again account for velocity and consider options for database maintenance and growth.
Mike did a great job of walking attendees through the numbers and calculations step by step. Furthermore, he created a Revenue Growth Marketing Calculator to help sales and marketing leaders run the numbers specific to their organization and answer the above questions with ease. For additional direction on these questions and how to use the Revenue Growth Marketing Calculator, visit the recording of our webinar, Revenue Planning (Part One): How Much Marketing Do You Need?
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Part Two: Finding the Optimal Marketing Mix
Thursday, April 18th at 1pm EST— Once you have determined the amount of marketing, discover the precise combination of email, PPC, SEO, social, etc. you need to meet your revenue goals. Stacey Steiger, VP of Marketing and Product Management, will answer the questions:
- What are the most effective digital marketing channels?
- What is the right marketing mix?
- How should I allocate spend on each channel?
For more information, visit Revenue Planning (Part Two): Finding the Optimal Marketing Mix
Part Three: Critical Resources for Growth
Thursday, May 23rd at 1pm EST—With a firm grasp on your revenue growth plan, learn how to efficiently support that plan with the appropriate skills and resources. Paul Rafferty, CEO, will answer the questions:
- What skills are required to execute?
- How should I organize my Sales & Marketing structure?
- How do I integrate people, process & technology?
For more information, visit Revenue Planning (Part Three): Critical Resources for Growth